Jane owns land adjacent to her home that appreciated in value by $5,000 this year. She acquired the land five years ago for $25,000. Based on these facts alone, the amount that would be included in her taxable income for the current year is:

Question

Quizplus · Accepted Answer

The appreciation in value of the land is unrealized gain, which is not taxable until the land is sold. Therefore, no amount is included in her taxable income for the current year.

Jane Owns Land Adjacent to Her Home That Appreciated in Value